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IMF Discloses Ongoing FX Reserve Rotation Out Of "Developed" Currencies Into Yuan, Ruble And Other Currencies
The latest IMF Currency Composition of Official Foreign Exchange Reserves report was just released. In the quarter ending March 31, the biggest relative drop occurred in central bank holdings of Dollars, declining as a percentage of total reserves from 62.2% in Q4 2009 to 61.5% in Q1 2010. This is the lowest ever relative holding of US Dollars by foreign banks. Oddly enough, the euro was not the biggest beneficiary of this loss of confidence in the dollar (it also declined on a relative basis by 0.1% as a % of total holdings to 72.2% in Q1), but the "Other" currency category. We assume that the Chinese Yuan is the dominant currency in this particular basket. Other reserves increased from 3.1% of total to 3.7% in just one quarter. Central banks are starting to rotate holdings out of Dollars (and after this quarter, certainly out of euros) and into non-traditional, non-developed currencies. Are China and Russia slowly becoming reserves?
FX holdings as a percentage of total:
Sequential QoQ change in FX holdings:
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The Mandy/Trish Index has definitely reached an all-time high today.
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Russia having a reserve currency?!
Hah, hah, hah, haha Oh God, let me catch my breath, haha hah hah hah....
Russia is a natural resources powerhouse.
Russia is now, and has always been, an economic joke. The reasons change but the behavior stays the same.
The Saudi Riyal has more claim to reserve currency status than Russia.
What do you think the BRICs and Saudis are buying gold for?
I'm with you mickeyc - better under the effing mattress
So after Q1 everyone decided to run right back to dollars? Seems like a rotation out of dollars should be dollar and treasury negative.
Russians must be trying to get more spies in the country, my email box is filled with Russian Mail Order bride spam. Desperate times call for desperate measures I guess.
The IMF is getting ready to change the composition of the SDR, to include the BRICs.
That is probably a good thing, and short-mid term bearish for the $ (a long term good thing)
How does one get Yuan outside of China? Maybe it is China Central Bank holding Yuan as reserve currency?
The Fantastic Four (renminbi, ruble, real, rupee) have come to save the planet from the Wall Street bubble-villains. You heard it first.
....and all turn into rubbish with falling global demand. You should have heard that before.
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